ERC Case No. 2022-015RC – COMMENTS ON THE COMMISSION’S ORDER DATED 19 JULY 2022 AND MOTION TO RESOLVE PENDING INCIDENCE
ENERGY REGULATORY COMMISSION
San Miguel Avenue, Pasig City
IN THE MATTER OF THE
APPLICATION FOR THE
APPROVAL OF THE
ANNUAL. REVENUE
REQUIREMENT AND
PERFORMANCE
INCENTIVE SCHEME FOR
THE FIFTH REGULATORY
PERIOD ( REGULATORY
YEARS 2023-2026) IN
ACCORDANCE WITH THE
PROVISIONS OF THE
RULES FOR SETTING
DISTRIBUTION WHEELING
RATES ( RDWR).
ERC CASE NO. 2022-015RC
MANILA ELECTRIC
COMPANY (MERALCO,
Applicant.
x——————————————–x
COMMENTS ON THE COMMISSION’S
ORDER DATED 19 JULY 2022
AND
MOTION TO RESOLVE PENDING INCIDENCE
The National Association of Electricity Consumers for Reforms, Inc. (NASECORE), represented by its National President, Petronilo L. Ilagan, respectfully states that:
1. Herein Intervenor-NASECORE received the e-copy of the Commission’s Order on 28 July 2022 at exactly 3.44 P.M. But said Order was signed and promulgated on 19 July 2022 or nine (9) days earlier.
2. In the Commission’s Order, it reads:
“ Thereafter, the Commission cancelled the hearing set on 19 July 2022 to give MERALCO ample time to submit its WACC Report. Thus, the Commission set the clarificatory hearing on 26 July 2022. However, on 18 July 2022, MERALCO filed a Motion to Reset, manifesting the unavailability of its expert witness on 26 July 2022, thus, praying that the 26 July 2022 clarificatory hearing be reset. Finding the Motion to Reset filed by MERALCO meritorious, the Commission hereby grants the same.”
3. Worth noting, while the Commission cited MERALCO’s Motion to Reset, it failed to mention MERALCO’s desired date of RESET which was 22 July 2022 at 2:00 P.M. as cited in item 3 of its Motion to Reset Clarificatory Hearing filed on 18 July 2022. Thus, in effect, the Commission granted applicant MERALCO Motion to Reset not on the date (22 July 2022) subject of the motion but on 10 August 2022 as cited in the said Order.
4. And the Commission’s Order reads:
“ IN VIEW OF THE FOREGOING, the Commission hereby sets the instant Application for hearing on the following dates and online platforms for the conduct thereof, pursuant to Resolution No. 09, Series of 2020 dated 24 September 2020 and Resolution No. 01, series of 2021 dated 17 December 2020 (ERC Revised Rules of Practice and Procedures:
| DATE | PLATFORM | ACTIVITY | |
| 10 August 2022
( Wednesday) at two o’clock in the afternoon (2:00 P.M.) |
Microsoft Teams |
Clarificatory Hearing on the WACC Report |
|
| 16 August 2022
(Tuesday) at two o’clock in the afternoon (2:00 P.M.) |
Microsoft Teams |
Pre-Trial Conference |
5. Intervenor NASECORE finds the Commission’s Order of 19 July 2022 out of time because its Order of Resetting was sent out on 28 July 2022 or nine (9) days after its date of promulgation and two (2) days after the date of the original schedule (26 July) which was the subject date of resetting thus, giving the appearance of an irregularity in the administration of justice as Intervenors were also not notified of the RESETTING ahead of the 26 July 2022 scheduled hearing.
6. Further, Intervenor NASECORE finds the Commission’s Order also contradictory because while it finds the Motion to Reset Clarificatory Hearing meritorious, said Order effectively denied the Motion to Reset said hearing on the date moved by Applicant MERALCO which was on 22 July 2022.
7. Moreover, the Commission’s Order cited that it noted during the 12 July 2022 hearing the following pleadings submitted by the parties, as follows:
a. Opposition filed by NASECORE on 24 May 2022.
b. Motion to Direct MERALCO to Furnish Intervenor NASECORE Free Copy of the TSN of the Clarificatory Hearings with ERC Consultants filed by NASECORE on May 24, 2022.
c. Motion for Reconsideration filed by TMO on 30 May 2022.
d. Comment (to Romeo Junia’s Motion for the Commission to Direct Meralco to Provide Consumer-Intervenors TSN of the Proceedings, Cost Charged to the Regulatory Liaison and Compliance Funds) filed by Meralco on 01 June 2022; and,
e. Opposition (to Therma Mobile, Inc.’s Motion for Reconsideration) filed by Meralco on 01 June 2022.
8. Noticeably, all of the above-mentioned pleadings were dated a lot earlier than the 18 July 2022 Motion to Reset by applicant MERALCO yet and sadly, not one of these above-mentioned pleadings has been resolved by the Commission. Intervenor NASECORE is not encouraged by the foregoing.
9. The Commission’s failure to act on the above-cited Motions especially the Consumer-Intervenors’ request to be furnished copies of the TSN of the clarificatory hearings and prior proceedings leaves them in the dark and renders it difficult to propound intelligent questions and participate constructively in the hearings which is tantamount to deprivation of due process and railroading of the proceedings in MERALCO’s favor.
10. Lastly, Intervenor NASECORE notes that during the 05 May 2022 hearing, the Commission directed applicant MERALCO to submit its WACC report for further clarificatory question by the Commission and the stakeholders on another Clarificatory Hearing before proceeding with the Pre-Trial Conference.
11. Interestingly, the Commission failed to mention in its Order of 19 July 2022 that the Pre-Trial Conference was originally set on 12 July 2022 by the Commission and that said hearing was called to order by the Presiding Officer. However, due to the failure of applicant MERALCO to submit its WACC report in compliance with the directive of the Presiding Officer during the 5 May 2022 hearing and citing the importance of the same, the Presiding Officer cancelled the Pre-Trial Conference during the hearing of 12 July 2022.
12. But more interestingly, the Commission’s Order of 19 July 2022 which was issued on 28 July 2022 reads:
“ ACCORDINGLY, Applicant MERALCO is hereby DIRECTED to file its Compliance containing the aforementioned WACC Report via the official electronic mail address of the Commission’s Central Records (CRD) at docket@erc.ph, within five-(5) days from receipt of this Order.”
13. Intervenor NASECORE notes that the Commission didn’t direct MERALCO to furnish all the Intervenors copy of the WACC Report so that they can also study in advance to enable them to raise intelligent clarificatory questions.
14. There were fifty (56) days since 5 May 2022 when the Commission directed MERALCO to submit its WACC Report prior to the original schedule of the Pre-Trial Conference on 12 July 2022 where all the Intervenors both pro-MERALCO and pro-Consumers were present.
15. Curiously, the Presiding Officer didn’t ask applicant MERALCO to explain why it failed to comply with the Commission’s directive which should have merited a reprimand, at least. And a question with a subtle tone of reprimand could have also been raised by any of the Intervenors had the Commission raised this compliance failure by applicant MERALCO.
16. It bears stressing that in recognition of the importance of the scheduled Pre-Trial Conference on 12 July 2022, herein Intervenor NASECORE submitted its Pre-Trial Brief on 7 July 2022 or five (5) days before the scheduled Pre-Trial Conference hearing on 12 July 2022 as scheduled by the Commission and the others submitted their respective Pre-Trial Brief also prior to 12 July 2022.
17. Owing to this NON-COMPLIANCE by applicant MERALCO to submit its WACC Report before the scheduled 12 July 2022 Pre-Trial Conference, the Presiding Officer was constrained to cancel the ongoing scheduled hearing for Pre-Trial Conference which effectively wasted the Commission’s time and resources as well as those of the intervenors.
18. And for a Privately-Owned Franchised Distribution Utility such as applicant MERALCO which has been operating for so long and whose lawyers and executives involved in the instant application are all employees of applicant MERALCO, its failure to comply with a directive of the Commission is simply unacceptable and contemptible. Surprisingly yet, the Presiding Officer didn’t bother asking applicant MERALCO why it failed to comply with the Commission’s 5 May 2022 directive.
19. The Commission’s silence on the NON-COMPLIANCE of applicant MERALCO to its directive of 5 May 2022 leads Intervenor NASECORE to believe that the Commission is making a Sacred Cow of MERALCO.
PRAYER
WHEREFORE, premises considered, Intervenor NASECORE respectfully prays that the Honorable Commission resolves prior to the scheduled Pre-Trial Conference all pending incidents as cited in the Commission’s Order dated 19 July 2022 and as likewise cited above and to penalize applicant MERALCO for its blatant failure to comply which resulted to the waste of time and resources of the Commission and the Intervenors by way of compensation.
Further, in light of the importance of the WACC Report of MERALCO prior to the Pre-Trial Conference, Intervenor NASECORE prays that the Commission ensures MERALCO’s compliance to the Order to submit its WACC Report within five (5) days from its receipt of the said Order so as to avoid another undue cancellation of the Pre-Trial Conference.
Pasay City for Pasig City. August 2, 2022
PETRONILO L. ILAGAN
Intervenor
Copy furnished:
MANILA ELECTRIC COMPANY
Lopez Building, Ortigas Avenue
Pasig City
regaffairs@meralco.com.ph
regulatory.legal.admin@meralco.com.ph
fdsantonio@meralco.com.ph
emcrobles@meralco.com.ph
OPLE LAW OFFICE
Counsel for Intervenor Alfredo J. Non
LG44 Cityland Pasong Tamo Inc., 6264 Calle Estacion
Pio del Pilar, Makati City
oplelawoffice@gmail.com; atty.LNVOple@gmail.com
MANUEL LAW OFFICE
apmanueljr@yahoo.com
ATTY. PARIS REAL
rbrlawfirm@gmail.com
ROMEO L. JUNIA
No. 8 Kaimito Road
Nayong Silangan, Brgy. Dalig
Antipolo City
philconsumerforum@gmail.com